[Click eStock] "Nextin, Profitability Normalization... Strong Q3 Performance Expected"

Shinhan Investment Corp. analyzed on the 22nd that Nextin is expected to record strong performance in the third quarter as profitability normalizes. The investment rating was maintained at 'Buy,' and the target price was raised to 90,000 KRW.

Shinhan Investment Corp. forecasted that Nextin will record sales of 34.2 billion KRW and operating profit of 14.7 billion KRW in the third quarter. This represents increases of 132.2% and 3395% respectively compared to the previous quarter.

Namgung Hyun, a researcher at Shinhan Investment Corp., explained, "The increase in equipment shipments is due to aggressive memory CapEx (capital expenditure) execution in China," adding, "For Chinese manufacturers, when purchasing semiconductor equipment from outside their country, they pay a premium, so the average selling price of equipment is estimated to be 1.5 to 2 times higher."

The expected sales and operating profit for the fourth quarter are 96.7 billion KRW and 37.2 billion KRW, respectively, representing increases of 10% and 3% compared to the previous quarter. He explained, "Although the fourth-quarter performance was estimated somewhat conservatively, given the strong willingness of Chinese clients to expand production capacity, it is possible to revise upward the performance estimates due to additional orders."

He stated, "The supply of demo equipment for the bump defect inspection equipment (Kroky) scheduled for the third quarter of this year has been delayed," and added, "Considering the time required for quality certification (generally 1 to 2 months for semiconductor post-process equipment), it is judged that demo equipment can be supplied within the fourth quarter and approval completed within the year."

He continued, "With recent expectations for new equipment and the stock price rebounding, considering the upside in performance due to the full-scale supply of bump defect inspection mass production equipment in 2025, there is potential for stock price appreciation."